A toy store gave Russia its largest IPO in nearly three years

Written by

Share

Written by

Surging oil prices and warming relations with the US have boosted the value of Russian stocks, earning the country a spot as one of the best-performing global markets in 2016. There’s growing investor confidence in the country’s financial position—and a toy store has become the unlikely beneficiary, and an early leader in Russia’s economic resurgence.

Detsky Mir (“Children’s World”) debuted on the Moscow Stock Exchange Feb. 10, marking the country’s first initial public offering of the year. The children’s goods retailer raised $355 million in its IPO, leading to a valuation of almost $1.1 billion.

Shares of Russia’s largest toy store were initially offered at 85 rubles per share; by the end of the day, the price had gone up 6% to 90 roubles ($1.53), which Reuters says indicates “cautious interest” from investors, perhaps tempered by western sanctions. At least 90% of the company’s shares were bought by foreign investors. By the end of the day on Monday, the share price was back to 85 roubles.

In its nearly 500 stores, Destky Mir sells toys, car seats, baby essentials, clothing, school supplies, among thousands of other essentials you would likely find at a Toys “R” Us. The Moscow-based, 70-year-old brand said in January 2017 that it expects to double its share of the children’s goods market over the next few years, and has plans for at least 250 more retail locations.